General Fund - September 2020 (See attachment)

Revenue Variances (+/- 10% of 75% target)

• Property taxes will remain below the targeted amount until the city receives the 2nd half tax settlement.
• Special assessments is a negative amount due to the payments to Republic Services for delinquent garbage assessments.  Similar to last year, this account will be negative until we receive our second half tax payments.
• Licenses and permits will exceed budget as a result of building permit revenues.
• Intergovernmental revenues exceed the budgeted target as a result of Federal Cares Act Relief Funding.
• Charges for services are below budget due to the Community Center/Ice Arena/SandVenture closures.
• Miscellaneous revenues are ahead as a result of investment income.

Expenditures Variances (+/- 10% of 75% target)

• In total, departmental expenditures are within the normal range and similar to last year's percentage through September.
• Planning and development is exceeding the targeted amount as a result of small business grants from CARES Act funds.
• Fleet is currently exceeding the targeted amount as a result of fuel system repairs and maintenance.
• Recreational expenditures are down as a result of COVID-19 related programming reductions.

Community Center/Ice Arena/Sand Venture - September 2020 (See attachment)

SandVenture - Did not open in 2020.

Community Center/Ice Arena - Revenues are behind in terms of budget targets and comparison to the previous year, primarily related to operations being closed and impacted by COVID-19.

Quarterly Investment Portfolio Report - Q3, 2020 (See attachment)

Attached is the 3rd quarter investment portfolio report including a cover page that provides a comparison of investment results over the past four years.

The city utilizes Securian Assets Management as an investment manager for a portion of the city's investment portfolio.  Part of their services include the preparation of quarterly investment reports.  City staff is responsible for managing the portion of the portfolio that has a shorter term investment focus.  This was previously also managed by Securian.  As a result of this change, the City is now having a third party (Wells Fargo Securities) run quarterly investment reports to encompass all City investments in addition to Securian's quarterly report for their portion of City investments.

As required by the investment policy the report provides:

• Total return performance measured against the selected benchmarks for longer-term funds (Securian report page 3)
• Weighted average yield (Wells Fargo report page 3)
• The carrying basis, the current calculated accredited basis and the current market value (Wells Fargo report page 3)
• A listing of individual securities held at the end of the reporting period listed by maturity date (Wells Fargo report pages 14-16)

As a reminder, the city's investment policy is guided by the investment acronym SLY, which stands for Safety, Liquidity and Yield, and in that priority order.  Safety or principal is the foremost objective of the investment program.  Second, the investment portfolio needs to remain sufficiently liquid to meet day-to-day operations requirements.  Lastly, attaining a market yield is the third goal of the investment policy.  The first two priorities of safety and liquidity limit the ability of the portfolio to realize comparable private sector earnings in robust years.  However, the policy also minimized the changes of experiencing losses in the down years. 

COVID-19 Financial Impact (See attachment)

In July, the city received $3,127,073 of Coronavirus Relief Funds (CRF).  Included is a memo that provides  detail of the city's submission of eligible expenditures through September 30.  An additional revenue summary (not currently eligible for reimbursement) has been provided.